Or. Admin. Code § 860-036-2200

Current through Register Vol. 63, No. 10, October 1, 2024

Section 860-036-2200 - Affiliated Interest Definitions

As used in rules OAR 860-036-2200 through OAR 860-036-2230:

(1) "Affiliate" means a corporation or person who has an affiliated interest, as defined in ORS 757.015, with a water utility;

(2) "Affiliate transaction" means a transfer of assets, a sale of supplies, or a sale of services between accounts for regulated activities of a water utility and accounts for nonregulated activities of a separate entity that is either an affiliated interest or another company in which the water utility owns a controlling interest. The term also means a transfer of assets, a sale of supplies, or a sale of services between accounts for the regulated and nonregulated activities of a single water utility;

(3) "Asset" means any tangible or intangible property of a water utility or other right, entitlement, business opportunity, or other thing of value to which a water utility holds claim that is recorded or should be recorded as a capital expenditure in the water utility's financial statements. All water utility tangible or intangible property, rights, entitlements, business opportunities and things of value should be considered assets, services, or supplies;

(4) "Cost" means fully distributed cost, including the water utility's authorized rate of return and all overheads;

(5) "Fair market value" means the potential sales price that could be obtained by selling an asset in an arm's-length transaction to a nonaffiliated entity, as determined by commonly accepted valuation principles;

(6) "Market rate" means the lowest price that is available from nonaffiliated suppliers for comparable services or supplies;

(7) "Net book value" means original cost less accumulated depreciation;

(8) "Nonregulated activity" means an activity that is not a regulated activity of the water utility;

(9) "Regulated activity" means a Commission regulated activity that is provided by a water utility directly or indirectly relating to the general operations of the water utility such as production, transmission, delivery, or provision of water;

(10) "Services" means labor-related activities including, but not limited to advice, auditing, accounting, sponsoring, engineering, managing, operating, financing, and legal. All water utility tangible or intangible property, rights, entitlements, business opportunities, and things of value should be considered assets, services, or supplies; and

(11) "Supplies" means any tangible or intangible property of a water utility or other thing of value that a water utility holds claim that is recorded or should be recorded as an operating expense in the water utility's financial statements. All water utility tangible or intangible property, rights, entitlements, business opportunities, and things of value should be considered assets, services, or supplies.

Or. Admin. Code § 860-036-2200

PUC 1-2017, f. & cert. ef. 1/24/2017

Stat. Auth.: ORS 183, 756, 757

Stats. Implemented: ORS 756.040, 757.015